After being closed for Labor Day, U.S. indexes fell Tuesday, driven lower once again by investor fears over more hawkish Federal Reserve policy and a growing energy crisis in Europe.
The S&P 500 declined 0.4%, the Dow slid 0.5%, and the tech-heavy Nasdaq suffered its seventh consecutive day of losses, surrendering 0.7%. Meanwhile the TSX fell 182 points on Tuesday to its lowest closing level in six weeks, as the energy and materials sectors led broad-based declines.
Major North American indexes reversed course and moved higher in Wednesday trading, despite fears of a slowing global economy and an aggressive Fed. By Wednesday’s close, the S&P 500 was up 72 points, the Dow added 436, and the Nasdaq gained 247. Each of the S&P 500’s 11 sectors notched gains, except for energy, which fell over fears of waning Chinese demand. In Canada, the TSX rose 153 points, with gains offset by the energy sector, which lost 3.1%.
As expected, the Bank of Canada increased its policy rate by 75 basis points to 3.25% on Wednesday, the highest level since 2008. At this point, all signs indicate that the BoC’s fight against inflation is far from over. Meanwhile the Fed is expected to raise its rate by another 75 basis points at its September 20-21 meeting.
U.S. stocks rose Thursday as investors once again parsed new remarks from Fed Chair Powell, while the European Central Bank took forceful action to tamp down inflation, raising its rate by 75 basis points. By Thursday’s close, the Dow gained 193, while the S&P 500 and Nasdaq rose 26 and 70 points, respectively. In Canada, the TSX jumped 171 points.
N.A. Indexes Bounce Back
For the three trading days covered in this report, the Dow gained 456 points to close at 31,774, the S&P 500 rose 82 points to settle at 4,006, while the tech-heavy Nasdaq added 231 points to close at 11,862. In Canada, the TSX rose 142 points to end at 19,413.
source https://richarddri.ca/markets-gain-ground-despite-outlook-for-rising-rates/
Dri Financial Group 